Top 10 Eaton Vance Income Funds: A Review of Taxable Closed-End Funds

Eaton Vance's top 10 taxable closed-end funds are reviewed, with a focus on their performance and potential for expansion as investments. The funds are known for their stability and potential for long-term growth, making them an attractive option for investors. The analysis highlights the benefits of owning these funds, including their diversified portfolios and consistent returns.

Eaton Vance, a prominent investment management firm based in Boston, Massachusetts, offers a diverse range of taxable closed-end funds (CEFs) that cater to income-focused investors. These funds are known for their stability and potential for long-term growth, making them an attractive option for both individual investors and financial professionals. This article reviews the top 10 taxable closed-end funds from Eaton Vance, focusing on their performance and potential for expansion as investments.

Key Characteristics of Eaton Vance's Taxable Closed-End Funds

Eaton Vance's closed-end funds are characterized by their focus on income generation, with monthly distributions paid at a set rate. These funds invest in top-tier securities with sophisticated research and knowledge backing, ensuring a reasonable distribution rate while also growing the market price. The funds are managed by highly educated professionals, many with Chartered Financial Analyst (CFA) designations, who select investments that are the best of breed and avoid risky companies.

Top 10 Taxable Closed-End Funds

1. Eaton Vance Enhanced Equity Income Fund II (EOS)
- Investment Strategy: Primarily invests in large and midcap stocks with above-average growth and financial strength, and writes call options on individual stocks.
- Performance: Achieved a 10-year total return of 260%, close to the S&P 500 Index (SPY) at 263.4%.
- Yield and Discount: Current yield of 7.5%, trading at a slight premium to NAV at 0.6%.

2. Eaton Vance Enhanced Equity Income Fund (EOI)
- Investment Strategy: Similar to EOS but with a slightly smaller market cap and a focus on large and midcap stocks.
- Performance: Achieved a 10-year total return of 240%.
- Yield and Discount: Current yield of 7.7%, trading at a slight premium to NAV at 0.1%.

3. Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY)
- Investment Strategy: Diversified portfolio of domestic and foreign common stocks with an emphasis on dividend-paying stocks, and writes calls on the S&P 500 (SPY).
- Performance: Achieved a 10-year total return of 225%.
- Yield and Discount: Current yield of 7.6%, trading at a slight premium to NAV of 1.5%.

4. Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (ETO)
- Investment Strategy: Global dividend-paying common and preferred stocks, seeking favorable tax treatment.
- Performance: Achieved a 10-year total return of 173%.
- Yield and Discount: Current yield of 7.5%, trading at a -7.4% discount to NAV.

5. Eaton Vance Tax-Advantaged Global Dividend Income Fund (ETG)
- Investment Strategy: Similar to ETO but with a slightly different asset mix.
- Performance: Achieved a 10-year total return of 173%.
- Yield and Discount: Current yield of 7.4%, trading at a -4.9% discount to NAV.

6. Eaton Vance Tax-Advantaged Dividend Income Fund (EVT)
- Investment Strategy: Focuses on domestic dividend-paying common and preferred stocks.
- Performance: Achieved a 10-year total return of 173%.
- Yield and Discount: Current yield of 8.2%, trading at a -8.5% discount to NAV.

7. Eaton Vance Tax-Managed Global Diversified Equity Income Fund (EXG)
- Investment Strategy: Diversified portfolio of domestic and foreign common stocks with an emphasis on dividend-paying stocks, and writes call options on US and foreign indices.
- Performance: Achieved a 10-year total return of 173%.
- Yield and Discount: Current yield of 8.9%, trading at a -6.5% discount to NAV.

8. Eaton Vance Risk-Managed Diversified Equity Income Fund (ETJ)
- Investment Strategy: Diversified portfolio of common stocks and sells out-of-the-money S&P 500 Index call options.
- Performance: Achieved a 10-year total return of 173%.
- Yield and Discount: Current yield of 8.7%, trading at a -8.3% discount to NAV.

9. Eaton Vance Tax-Managed Buy-Write Opportunities Fund (ETV)
- Investment Strategy: Diversified portfolio of common stocks and writes call options on US indices.
- Performance: Achieved a 10-year total return of 173%.
- Yield and Discount: Current yield of 8.7%, trading at a -8.3% discount to NAV.

Conclusion

Eaton Vance's top 10 taxable closed-end funds offer investors a range of income-focused investment options with a strong track record of performance. These funds are managed by highly educated professionals who focus on top-tier investments and tax management. The diversified portfolios and consistent returns make these funds an attractive option for investors seeking stable income with potential for long-term growth. As always, it is essential for investors to conduct thorough research and consult with financial advisors before making investment decisions.

References
[1] https://seekingalpha.com/article/4805689-top-10-income-funds-from-eaton-vance